Ryder System Inc. (R, Financial) has announced its financial results for the first quarter, recording a revenue of $3.13 billion. This figure narrowly missed the analyst consensus estimate of $3.14 billion. Despite this slight shortfall, the company showcased significant earnings growth, marking the second consecutive quarter of year-over-year increases.
According to Ryder's Chairman and CEO, the robust performance is credited to the strength of the company's contractual businesses. The company is on course to realize strategic benefits by 2025, thanks to several key initiatives that are already in progress. These include a lease pricing strategy, cost reductions from ongoing maintenance improvements, integration of acquisition synergies, and enhancement of their omnichannel retail network.
Ryder also reported an impressive return on equity (ROE) of 17% for the quarter, underlining the effectiveness and resilience of its updated business model. The company's leadership remains optimistic about achieving expected growth targets and continues to drive strategic initiatives to further strengthen its market position.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Ryder System Inc (R, Financial) is $164.39 with a high estimate of $175.00 and a low estimate of $143.94. The average target implies an upside of 19.14% from the current price of $137.98. More detailed estimate data can be found on the Ryder System Inc (R) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Ryder System Inc's (R, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ryder System Inc (R, Financial) in one year is $124.34, suggesting a downside of 9.89% from the current price of $137.98. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ryder System Inc (R) Summary page.
